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Landlords – Is It The Right Time To Improve Your Rental Unit?

November 1st, 2012 · No Comments · Tenant screening

 Improve Your Rental Unit and Get More Money Out of Your Investment Property!

It’s the goal of every property investor to earn as much money as you can from your rental property. After all, you invested a lot of your hard-earned money into the property, spent hours doing repairs and beautifying it, and have taken a risk to become a landlord.

So how can you raise the rent?

Of course you could simply advertise your rental property for a hundred dollars more per month. Except if you do that the law of Supply and Demand might mean you won’t have any good tenants interested in renting from you. It isn’t fun having a vacant rental property month after month when the mortgage still needs to be paid.

What’s the Best Path Forward for Raising Rents?

Landlords should consider making improvement to the rental property.

How Much Can I Raise the Rent?

In Ontario you can raise the rent 3.1% in 2012 and up to 2.5% in 2013. However, when you get new tenants you can charge as much as you want.

What Type of Improvements?

Focus on improving the appeal of the property.

Isn’t Investing In Improvements Risky Because Tenants May Wreck Everything You Did?

Some landlords do in fact worry about potential damages. But if you do them right you will be able to attract better tenants who will respect your property.

What Are the Pros And Cons Of Improving the Property Vs. Not Spending Any Money?

If you don’t invest in any improvements you get the following advantages:

– You Save Yourself A Lot of Money

– You Don’t Have to Risk Vacancy While the Improvements are Being Made.

And If I Do Decide on Investing and Making Improvements?

If you decide to make improvements you get the following advantages:

-You Will Increase the Value of Your Investment Property If You Decide to Sell.

– You can Raise Your Rent.

– You May Be Able To Attract a Better Tenant and Avoid the Worst Tenants. And rent to Tenants With Insurance!

No matter what you decide, remember to do credit checks and proper tenant screening to avoid the Pro Tenants.

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